Payden Corporate Bond Fund (PYACX)
$9.81
NAV ($)
$-0.02
NAV change ($) as of 3/21/2025
- Overview
- Portfolio Statistics
- Performance & Expenses
- Fund Commentary
Investment Strategy
The Payden Corporate Bond Fund’s strategy is to purchase investment-grade corporate bonds of companies that have leading market positions, strong cash flow generation, stable management teams and predictable earnings. The strategy’s focus is on bottom-up credit selection with an emphasis placed on adding issues with a near-term catalyst to outperform. Our credit research process looks to capitalize on opportunities in the corporate bond market across sectors and maturities; including the early identification of potential rising stars - companies that we believe will be upgraded to investment grade in the near term. A forward-looking approach is taken to credit analysis. A priority is placed on assessing a company’s future trajectory and the corresponding risk and opportunities for bondholders under various scenarios. Up to 20% of fund assets may be below investment grade.
Role In Portfolio
Appropriate as a fixed-income holding for investors seeking a dedicated corporate bond strategy.
Fund Highlights
| The fund is a well-diversified portfolio of U.S. dollar investment-grade corporate securities backed by extensive in-house credit research. | |
| It invests in credits across the full maturity spectrum and its duration and curve positioning are actively managed. | |
| The fund has the flexibility to opportunistically invest in below investment-grade securities and emerging-market debt. | |
| No loads (other fees apply). | |
| The value of an investment will generally fall when interest rates rise. |
Fund Snapshot - 02/28/2025
| Fund Inception Date | Mar 12, 2009 |
| Share Class Inception Date | Mar 12, 2009 |
| Ticker | PYACX |
| CUSIP | 704329366 |
| Fund Total Net Assets | $378.3 million |
| Benchmark | Bloomberg US Corporate Bond Index |
| Net Expense Ratio | 0.66% |
| Sales Charge | None |
| Investment Minimum | |
| Investor Class - Regular Account | $100,000 |
| Investor Class - IRA Account | $100,000 |
| Adviser Class - Regular Account | $5,000 |
| Adviser Class - IRA Account | $2,000 |
| SI Class | $10,000,000 |
| Additional Investment - All Classes | $250 |
A Low Cost leader
| Payden Corporate Bond Fund (PYACX) | Morningstar average: Corporate Bond |
|
|---|---|---|
| Net Expense Ratio | 0.66% | 0.87% |
Quoted performance data represent past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so investors' shares, when sold, may be worth more or less than their original cost. For the most recent month-end performance, which may be higher or lower than that quoted, go to the Mutual Funds > Performance page on this website, or call 800 572-9336.
To obtain a prospectus or summary prospectus, click on the Prospectuses & Reports link on the right side of this page, or call 800 572-9336. Before investing, investors should consider investment objectives, risks, charges, expenses and other important information, which are contained in these documents; read the prospectus carefully before investing. Investment in foreign securities offers different rewards and challenges from investing in domestic securities, including changes in exchange rates, political changes, and differences in reporting standards, and for emerging-market securities, higher volatility. The Payden Funds are distributed through Payden & Rygel Distributors, member FINRA.
Please note that by your use of this website and/or sending Payden & Rygel any information via this website, you acknowledge that any personal information you provide to us will be subject to our Privacy Notice set forth in Prospectus Appendix B here.
The investment strategy and investment management information presented on this website should not be construed to be formal financial planning advice or the formation of a financial manager/client relationship. Payden.com is an informative website designed to provide information to the general public based on our recommendations of investment management and investment strategies and is not designed to be representative of your own financial needs. Nor does the information contained herein constitute financial management advice. The firm makes no warranty or representation regarding the accuracy or legality of any information contained in this website, and assumes no liability for the use of said information. Be advised that as Internet communications are not always confidential, you provide our website your personal information at your own risk. Please do not make any decisions about any investment management or investment strategy matter without consulting with a qualified professional.
Portfolio Characteristics - 02/28/2025
| Fund Inception Date | Mar 12, 2009 |
| Total Net Assets | $378.3 million |
| Average Duration | 6.9 years |
| Average Maturity | 13.0 years |
| 30-Day SEC Yield | 4.98% |
| 30-Day SEC Yield (unsubsidized) | 4.97% |
Duration Breakdown
| Years | Percent of Portfolio |
|---|---|
| 0-1 | 9% |
| 1-3 | 17% |
| 3-5 | 18% |
| 5-7 | 17% |
| 7-10 | 12% |
| 10+ | 27% |
| Total | 100% |
Credit Breakdown
| Credit Quality | Percent of Portfolio |
|---|---|
| AAA | 8% |
| AA | 10% |
| A | 31% |
| BBB | 41% |
| BB | 7% |
| B | 3% |
| Total | 100% |
Sector Breakdown
| Sector | Percent of Portfolio |
|---|---|
| Industrials | 42% |
| Financial Institutions | 37% |
| Utilities | 8% |
| Mortgage-Backed | 5% |
| Asset-Backed | 2% |
| Money Markets | 2% |
| Other | 4% |
| Total | 100% |
Quoted performance data represent past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so investors' shares, when sold, may be worth more or less than their original cost. For the most recent month-end performance, which may be higher or lower than that quoted, go to the Mutual Funds > Performance page on this website, or call 800 572-9336.
To obtain a prospectus or summary prospectus, click on the Prospectuses & Reports link on the right side of this page, or call 800 572-9336. Before investing, investors should consider investment objectives, risks, charges, expenses and other important information, which are contained in these documents; read the prospectus carefully before investing. Investment in foreign securities offers different rewards and challenges from investing in domestic securities, including changes in exchange rates, political changes, and differences in reporting standards, and for emerging-market securities, higher volatility. The Payden Funds are distributed through Payden & Rygel Distributors, member FINRA.
Please note that by your use of this website and/or sending Payden & Rygel any information via this website, you acknowledge that any personal information you provide to us will be subject to our Privacy Notice set forth in Prospectus Appendix B here.
The investment strategy and investment management information presented on this website should not be construed to be formal financial planning advice or the formation of a financial manager/client relationship. Payden.com is an informative website designed to provide information to the general public based on our recommendations of investment management and investment strategies and is not designed to be representative of your own financial needs. Nor does the information contained herein constitute financial management advice. The firm makes no warranty or representation regarding the accuracy or legality of any information contained in this website, and assumes no liability for the use of said information. Be advised that as Internet communications are not always confidential, you provide our website your personal information at your own risk. Please do not make any decisions about any investment management or investment strategy matter without consulting with a qualified professional.
| Number of funds | |||
|---|---|---|---|
 |
Overall |  |
172 |
| 3 Year | |
172 | |
| Category: Corporate Bond | 5 Year | |
0 |
| Criterion: Risk-Adjusted Return | 10 Year | |
0 |
Total Returns
| YTD | 1 Year | 3 Year | 5 Year | 10 Year | Since Inception | |
|---|---|---|---|---|---|---|
| Quarter-end (12/31/2024) | 3.16% | 3.16% | -2.15% | 0.34% | 2.84% | 4.95% |
| Month-end (2/28/2025) | 2.72% | 7.22% | 0.44% | 0.11% | 2.92% | 5.08% |
Yearly Returns
| 2024 | 3.16% |
| 2023 | 8.53% |
| 2022 | -16.33% |
| 2021 | -0.07% |
| 2020 | 8.64% |
| 2019 | 14.46% |
| 2018 | -3.05% |
| 2017 | 8.53% |
| 2016 | 6.82% |
| 2015 | 1.15% |
Expenses
| Total Annual Operating Expense | 0.68% |
| Net or Actual Operating Expense | 0.66% |
Quoted performance data represent past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so investors' shares, when sold, may be worth more or less than their original cost. For the most recent month-end performance, which may be higher or lower than that quoted, go to the Mutual Funds > Performance page on this website, or call 800 572-9336.
To obtain a prospectus or summary prospectus, click on the Prospectuses & Reports link on the right side of this page, or call 800 572-9336. Before investing, investors should consider investment objectives, risks, charges, expenses and other important information, which are contained in these documents; read the prospectus carefully before investing. Investment in foreign securities offers different rewards and challenges from investing in domestic securities, including changes in exchange rates, political changes, and differences in reporting standards, and for emerging-market securities, higher volatility. The Payden Funds are distributed through Payden & Rygel Distributors, member FINRA.
Please note that by your use of this website and/or sending Payden & Rygel any information via this website, you acknowledge that any personal information you provide to us will be subject to our Privacy Notice set forth in Prospectus Appendix B here.
The investment strategy and investment management information presented on this website should not be construed to be formal financial planning advice or the formation of a financial manager/client relationship. Payden.com is an informative website designed to provide information to the general public based on our recommendations of investment management and investment strategies and is not designed to be representative of your own financial needs. Nor does the information contained herein constitute financial management advice. The firm makes no warranty or representation regarding the accuracy or legality of any information contained in this website, and assumes no liability for the use of said information. Be advised that as Internet communications are not always confidential, you provide our website your personal information at your own risk. Please do not make any decisions about any investment management or investment strategy matter without consulting with a qualified professional.
(A) An overall rating is based on a weighted average of the fund’s ratings for the three-, five- and ten-year periods, if applicable. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating (based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a funds monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive five stars and the next 22.5% receive four stars. Highly rated funds are defined as those that have a four or five star Morningstar rating. Data provided by Morningstar, Inc. Although gathered from reliable sources, data completeness and accuracy cannot be guaranteed. Morningstar is a registered trademark of Morningstar, Inc. and is not affiliated with Payden Funds
Fund Commentary - 02/28/2025
| MARKET | |
| In February, despite inflation data coming in higher than expected, concerns about economic growth dominated the headlines, pushing U.S. Treasury yields lower across the curve. The 2-year yield decreased by 0.21% to 3.99%, while the 10-year yield fell 0.33% to 4.21%. These same concerns also pressured corporate yields over similar-maturity U.S. Treasuries, which rose 0.08% on the month to 0.87%, its highest level since last October. As a result, all-in yields on 1- to 30-year corporate bonds fell 0.22% to 5.08%. | |
| February investment-grade supply finished the month with $155 billion, bringing year-to-date totals to $345 billion, down 11% from this same time last year. Non-financial supply outpaced financial sectors 71% to 29%, respectively, as companies emerged from their respective earnings blackout period. | |
| OUTLOOK | |
| During the month, the Fund utilized the new issue calendar adding exposure across a broad range of sectors such as energy, communications, and consumer cyclicals. The Fund focused on securities with strong risk-adjusted value, as well as higher-quality names expected to outperform in a market selloff. Additionally, the Fund continued to diversify by adding out-of-index exposure within high-yield assets. On the other hand, it reduced exposure to bank, utility, and insurance names that had already performed well. The Fund maintained a modestly long duration relative to its benchmark. | |
| Corporate markets finally started to show signs of strain after relentless tariff discussions, which were ultimately implemented in early March, unsettling investors. However, there remains significant uncertainty about the long-term impact of these tariffs, some of which are already being reconsidered. This has left markets on unstable ground as investors anxiously await the next headline. Despite this uncertainty, corporate issuers continue to aggressively enter the market, likely enticed by lower U.S. Treasury yields. This influx of supply continues to be met with voracious demand though investors are now requiring slightly higher risk premiums. | |
| While we remain optimistic about the U.S. macroeconomic outlook, we acknowledge recent weaker data and continue to be highly data-dependent. On a positive note, this may increase the likelihood of further Federal Reserve rate cuts this year. Given the fast-paced changes across the global landscape, we anticipate heightened volatility in credit markets in the coming months. While our long-term corporate outlook remains positive, we recognize that this new environment brings both increased risks and opportunities. As a result, careful credit selection and the ability to adapt positioning to the evolving landscape will be critical in the year ahead. | |
Quoted performance data represent past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so investors' shares, when sold, may be worth more or less than their original cost. For the most recent month-end performance, which may be higher or lower than that quoted, go to the Mutual Funds > Performance page on this website, or call 800 572-9336.
To obtain a prospectus or summary prospectus, click on the Prospectuses & Reports link on the right side of this page, or call 800 572-9336. Before investing, investors should consider investment objectives, risks, charges, expenses and other important information, which are contained in these documents; read the prospectus carefully before investing. Investment in foreign securities offers different rewards and challenges from investing in domestic securities, including changes in exchange rates, political changes, and differences in reporting standards, and for emerging-market securities, higher volatility. The Payden Funds are distributed through Payden & Rygel Distributors, member FINRA.
Please note that by your use of this website and/or sending Payden & Rygel any information via this website, you acknowledge that any personal information you provide to us will be subject to our Privacy Notice set forth in Prospectus Appendix B here.
The investment strategy and investment management information presented on this website should not be construed to be formal financial planning advice or the formation of a financial manager/client relationship. Payden.com is an informative website designed to provide information to the general public based on our recommendations of investment management and investment strategies and is not designed to be representative of your own financial needs. Nor does the information contained herein constitute financial management advice. The firm makes no warranty or representation regarding the accuracy or legality of any information contained in this website, and assumes no liability for the use of said information. Be advised that as Internet communications are not always confidential, you provide our website your personal information at your own risk. Please do not make any decisions about any investment management or investment strategy matter without consulting with a qualified professional.